Mortgage for an apartment: instructions for use

Why do you need a mortgage for an apartment and what does it look like?

A mortgage note is a security document confirming the transfer of an apartment as collateral to the bank. If the borrower stops paying the loan, the bank can do 2 things:

1. Repossess and sell the mortgaged property.
2. Sell ​​or transfer a mortgage to another bank.

The subject of collateral can be:

• Apartment.
• A private house.
• Non-residential premises.
• Country cottage area.
• Industrial buildings and structures.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

Until the mortgage is paid, the mortgaged property is under the bank's encumbrance. After the loan is fully repaid, the mortgage is canceled and the owner can dispose of the property at his own discretion. If the apartment is pledged, the borrower must ask the bank’s consent to carry out any transactions. He will not be able to sell, donate or exchange the apartment without the bank’s permission.

Why do you need a mortgage for an apartment?

1. The borrower who takes out a pledge receives more favorable lending conditions. This does not apply to all banks.
2. The bank receives a money back guarantee. If the borrower stops paying the loan, the document allows the bank to sell the mortgaged property and return the money.
3. The bank may attract third-party investments. The law allows the lender to sell mortgages to other banks and make money from it. The conditions for the borrower do not change.

What should the document contain?

The requirements for the content of a mortgage and the procedure for its execution are prescribed in Chapter 3 of Federal Law No. 102 “On mortgage (real estate pledge).” There is no single form for this document.

By law, this paper must contain:

1. Name and identification number. The name must include the word “Mortgage”. The number is usually indicated in the header of the document.
2. Information about the bank (mortgagee). Legal address, full name, license of a banking institution, checkpoint, tax identification number.
3. Information about the borrower (mortgagor). Individuals indicate their full name, registration address, passport details, SNILS. For legal entities, you must provide the full name of the organization, legal address, TIN, KPP. In rare cases, the mortgagor is not the borrower, but another person. Then indicate his data.
4. Information about the mortgage agreement. Indicate the document number, date of registration, loan amount, repayment schedule, monthly payment amount, interest. If the loan is taken out in a foreign currency, it is necessary to register the conversion rate of this currency into rubles. This is necessary to correctly determine the cost of the loan and interest. Pay special attention to this point - violation of the terms of the agreement gives the bank the right to seize the collateral.
5. Description of the collateral property. Indicate the address, area of ​​the property, number of rooms, cadastral passport number.
6. Assessed value. The document also states the estimated value of the property, indicated by an independent expert.
7. The presence of other encumbrances on the object (rent, lease, arrest) . If there are no encumbrances, write this down.
8. Stamp and signature. Signatures of the parties, seals (for banks and legal entities), date of preparation of the document.

Attention! You sign a document that will allow the bank to take your apartment if the mortgage agreement is violated. Carefully check the contents of the mortgage for errors. Make sure that the data matches the contents of the loan agreement. If further disagreements arise, the court will rely on the mortgage.

Example of a mortgage form

You can see what a mortgage note looks like in the visual preview window below. You can follow this link and open it on your computer in Word.

One more example:

What does a mortgage look like?

The color, size of the form and fonts on it may differ in different banks. 3ato F3 No. 102 “On mortgages” puts forward requirements for information that must be contained in the document. This is:

✅ the name of the document and its identification number - the place where the mortgage number is indicated is not regulated, but it is usually placed in the header;

✅ information about the borrower - last name, first name, patronymic, date of birth and passport details;

✅ information about the bank - legal data, including TIN, checkpoint and other information;

✅ number, date of conclusion and other information about the signed loan agreement;

List of documents for registration of a mortgage

For registration they usually provide:

• Borrower's passport. Most banks require permanent registration - you can register in the apartment you are purchasing.
• Independent appraiser's report. Needed to confirm the market value of the property. Mortgage appraisals are carried out by companies accredited by the bank. The cost of the report ranges from 2.5 to 5 thousand rubles. It must be submitted to the bank no later than 6 months from the date of registration.
• Purchase and sale agreement, extract from the Unified State Register or certificate of ownership.
• Insurance policy for the purchased apartment. If the home burns down or is destroyed for other reasons, the insurance company will pay the bank the remaining debt on the loan. Insurance provides a guarantee that the mortgage will be paid under any circumstances.
• Cadastral passport and a copy of the floor plan of the property.
• The act of acceptance and transfer of the object when purchasing an apartment in a new building.
• Marriage certificate (if available).
• Mortgage agreement, guarantee agreements, if any.

Important! The bank prepares a mortgage for the apartment along with the loan agreement. The borrower only checks, signs and registers it with Rosreestr. The complete list of documents may vary depending on the situation, bank, and regional laws. Therefore, always check with the bank what documents need to be provided.

AHML - borrower's personal account

• Minimum interest rate: 10%
• Minimum contribution: 20%
• Loan term : from 3 to 30 years
• Requirements for the borrower : the borrower's age is from 21 to 65 years at the date of loan repayment, at least 3 months of work experience at the last place of work, it is possible to attract up to 4 co-borrowers for one loan.

• Minimum interest rate: 9,75%
• Loan amount : up to 80% of the value of the mortgaged apartment
• Loan term : from 3 to 30 years
• Requirements for the borrower : the borrower's age is from 21 to 65 years at the date of loan repayment, at least 3 months of work experience at the last place of work, it is possible to attract up to 4 co-borrowers for one loan.
• Requirements for the previous loan : 6 scheduled payments on the loan were paid without delays, there are no debts on the loan, no loan restructuring was carried out.
• Requirements for a facility under construction : compliance with 214-FZ (the law applies to apartments under construction), the mortgaged property must be located in a building included in the list of accredited facilities. If you have chosen a house that is not on the list, our manager will contact the developer - we review documents for new properties in 2 days.

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Applying for a mortgage - step-by-step instructions

According to the standard scheme, document preparation is carried out in 5 stages. Step-by-step instructions are provided below.

From July 1, 2021, it was allowed to register mortgages electronically. We'll talk about this below. Now let's look at the process of registering a regular paper mortgage.

Stage 1. Sign the document at the bank

Typically, a mortgage note is signed when a loan agreement is signed. It is composed by a banking institution. The client provides the necessary package of documents, carefully checks the contents of the paper and signs it.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

The mortgage is the most important document for you. According to it, you leave your apartment as collateral to the bank. Errors in a loan agreement are not as bad as errors in a mortgage. If there is something wrong with this document, you will not be able to remove the encumbrance from the apartment. You'll have to sue the bank to do this. You will waste time and money. Always check the paper carefully and compare it with the loan agreement. Mistakes will cost you dearly.

Stage 2. Pay the state fee

If the collateral is mortgaged real estate, then the mortgage is registered along with the right of ownership. To register property rights, you must pay a state fee.

The state duty is:

• 2,000 rubles for individuals.
• 220,000 rubles for legal entities.

State duty is paid in 3 ways:

1. At any bank.
2. At the Rosreestr box office.
3. In the terminals.

Be sure to take a receipt or check to confirm that you paid. Without a receipt, documents for further registration will not be accepted.

If the bank already owns real estate as collateral, there will be no mortgage costs. They only pay for the title.

Example:

Viktor Petrovich takes out a mortgage loan for a new apartment, and leaves his existing apartment as collateral. He will pay the state fee only for registering property rights. The mortgage will be registered free of charge.

Stage 3. Register a mortgage through the MFC

You should contact the MFC with a signed mortgage note, a receipt for payment of the state fee and a package of documents. You can contact any center that is closer and more convenient. Center employees check all submitted documents and issue 2 receipts to the mortgagor.

The receipts will indicate the list of documents submitted and the deadline for issuing the extract. The second copy of the receipt must be given to the bank.

Next, the MFC sends the client’s documents to Rosreestr for registration. If there are blots or corrections in the documents, they will not be accepted. Wrinkled papers are also not accepted.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

The MFC acts as an intermediary between Rosreestr and the borrower. Registering a mortgage through the MFC is more convenient, but longer. When you contact Rosreestr directly, the mortgage will be registered faster. However, at Rosreestr you usually have to stand in lines. Therefore, pledgors more often send documents through the MFC.

The standard registration period is from 3 to 5 working days. It takes another 2–4 days to transfer documents from the MFC to Rosreestr.

Stage 4. Receive documents from Rosreestr

You should come to Rosreestr by the appointed date. To receive completed documents, you must provide a receipt received from the MFC. An employee of Rosreestr will issue the pledgor with an extract from the Unified State Register of Real Estate with a note indicating the presence of an encumbrance in the form of a pledge. Rosreestr will send the original mortgage note to the bank.

Important! The mortgage note is drawn up in a single copy and signed once. There can be any number of additional agreements and duplicates - at least 15, at least 20. The original remains unchanged. Reprints and corrections are not permitted.

Stage 5. Get a duplicate from the bank

After registering the mortgage, be sure to ask for a duplicate of it at the bank. A duplicate is needed to confirm the terms of the pledge in case the original is lost.

A duplicate is issued free of charge, and the appropriate mark is placed on it. Check it carefully to ensure it matches the original. Even one minor mistake can invalidate the mortgage.

Example:

The bank issued Vitaly a duplicate mortgage note with errors. The bank lost the original. Vitaly will have to prove his case in court. He will win the trial, but will waste his time and money. If Vitaly had asked to make a duplicate after registering the document, there would have been no problems.

What to do after paying off the mortgage and returning the mortgage?

After the mortgage is repaid, the bank cancels the mortgage and returns it to the client within a few business days. The acceptable period for returning paper is 1 calendar month, unless otherwise specified in the loan agreement. After receiving a mortgage, the encumbrance must be removed from the property.

To remove the encumbrance from an apartment, the borrower must:

1. Pay off your mortgage in full.
2. Obtain a certificate confirming full repayment of obligations.
3. Apply for a mortgage.
4. Withdraw a security from the bank. The bank must put a note on it that the loan has been repaid.
5. Come to the MFC or Rosreestr along with the received mortgage and a certificate from the bank.
6. Write an application to remove the encumbrance.
7. Receive an extract from the Unified State Register of Property Rights and a canceled mortgage.

Only after all these actions do you have the right to dispose of the property at your own discretion. We recommend keeping the mortgage.

Possible pitfalls and answers to frequently asked questions

❓ What is mortgage depository

A depository is a company that stores mortgages. If the bank transfers the mortgages to the depository, it can quickly ensure the transfer of ownership rights under the document without the participation of the Bank. In addition, depositories centrally process payments - for example, if the bank sells a mortgage, the borrower can pay the depository, and it will redirect the money to the necessary accounts.

❓ Where is the mortgage note stored?

The original is kept only by the pledgor. You may have a duplicate in your hands - if you lose the original, it will give you the opportunity to remove the burden. By the way, if the bank has lost the original, it is still obliged to provide a duplicate. A refusal to issue a duplicate can be easily appealed in court.

❓ What to do if the bank has lost the mortgage

If you have a duplicate, you can do nothing and use it to remove the burden. If there is no duplicate, the bank must receive it from the Register or issue it independently.

❓ What to do if the bank does not issue a mortgage after repaying the loan

It’s important - to get a mortgage, you need to write an application to receive it. Without an application, no one will begin the process of searching and issuing a document. If you have not received the original document in your hands within the period established in the agreement after repaying the mortgage, write a complaint to the bank or go to court.

❓ Is it possible to make changes to the mortgage

The law does not limit changes to securities. That is, in the event of a change of owners, changes in the loan agreement or other changes, you can change the information in the mortgage. To do this, you need to contact the bank and draw up an agreement on making changes, and then contact the Register with the signed agreement and the rest of the package of documents.

❓ How to find out whether a mortgage has been issued

Information about the presence of an encumbrance on the apartment does not mean the presence or absence of a mortgage. If you plan to buy an apartment, then before the transaction the seller must remove the encumbrance. If a mortgage has been drawn up, this will affect the withdrawal time (you will have to wait for the mortgage from the bank), if not, the transaction will go through faster. Check this point with the seller, and you can find out the real terms for issuing the mortgage yourself by contacting the mortgagor bank (it is indicated in the EGRN certificate for this information). ekty). All this will allow you to correctly determine the timing of the transaction.

❓ If the mortgage is repaid early

If you repay the loan early, nothing changes in the procedure for receiving the mortgage in hand and removing the encumbrance from the property. The bank is obliged to issue the document within a calendar month from the moment the request is received, regardless of whether you repaid the loan on time or earlier.

❓ Is it possible to have a mortgage without a mortgage?

A mortgage without issuing a mortgage is possible - we said above that issuing a security is not a prerequisite for obtaining a loan. But in practice, most banks require its registration.

❓ If you buy housing under construction

If you buy housing under construction, the collateral will be the rights of claim to the developer. That is, the mortgagor’s guarantee is that he will be able to demand from the developer the fulfillment of obligations for the construction of residential real estate.

Latest news and innovations for 2021

Making and registering mortgages is simplified. The possibility of electronic registration has become available, and Sberbank has completely canceled the issuance of paper mortgages for some mortgage transactions. Let's take a closer look at the latest news.

Registration of an electronic mortgage on the Rosreestr website

Electronic mortgages are valid from July 1, 2018. The borrower fills out the form on the official website of Rosreestr or on the State Services portal. Electronic signatures of the mortgagor and the mortgagee are placed on the mortgage note. The package of documents is provided in electronic form.

An electronic document eliminates the possibility of its loss by the bank. The security is stored electronically in the depository. This is a company that specializes in securities transactions.

Advantages of an electronic mortgage:

1. The bank will not lose the electronic mortgage, as it can do with a paper one.
2. There is no need to go to the MFC - the bank itself sends an application for registration.
3. After registration, the electronic document is automatically transferred for storage to the depository specified by the bank.
4. After paying off the mortgage, you do not need to write an application to cancel the paper.

conclusions

A mortgage is a very important document. We can say that this is the most important paper for the borrower. According to it, he leaves his own housing as collateral to someone else's organization. In most cases it is the only one.

Let's draw the main conclusions from the article:

1. The mortgage guarantees the lender the return of funds. Until the borrower pays off the mortgage, he has no right to carry out transactions with the collateral real estate without the consent of the bank.
2. When drawing up and signing a mortgage, you need to carefully check everything. This security has priority over the loan agreement. In case of possible disputes and disagreements, the information from the mortgage will be considered correct.
3. The original paper is kept by the lender.
4. After registering the mortgage, be sure to request a duplicate of it.
5. While the mortgage is being paid off, the owner of the mortgage may change. Nothing will change for the borrower. It is only possible to change the account details for transferring mortgage payments.

What to do if the bank does not give the paper?

If the borrower has fully complied with all the terms of the mortgage agreement, properly completed an application for the return of the mortgage, waited until the end of the period allotted under the agreement for the procedure, but never received the original, this is grounds for filing claims against the bank. In this case, the refusal to issue a mortgage is absolutely unlawful.

If you find yourself in such a situation, you need to act as follows:

1. You should prepare a written claim and send it to the head office of the credit institution.
2. If a response to the complaint has not been received or it contains an unreasonable refusal to satisfy the client’s request, the next step is to send a complaint to the Central Bank of the Russian Federation. In practice, this measure is very effective.
3. Even if an appeal to the Central Bank of the Russian Federation is unsuccessful, then a radical way to influence an unscrupulous creditor is to file a claim in court.

When are such actions legal?

The bank has the legal right not to issue the original mortgage note in the following cases:

• the borrower has not fully repaid the debt under the mortgage agreement;
• the client did not submit an application of the established form;
• the debtor makes demands for the return of the mortgage before the expiration of the period specified in the agreement.